Price List: Zhongjing Petrochemical lifted export offers amid improving local demand

China’s Zhongjing Petrochemical reportedly lifted export PP offers by $5/ton following the surging Dalian Commodity Exchange and reviving domestic demand since last Friday.

The latest offers from the producer and changes from the previous offers are as follows:

According to a source close to the producer, the adjustment was introduced last Friday and given the continued firming domestic market this week, Zhongjing is contemplating further hikes.

“Responses from overseas customers are weak, particularly within the Asia region. Any increases would only face resistance. We might focus more on the domestic spot market for now,” said, the producer.  

Competition in Southeast Asia was rather intense in the past week as Chinese traders escalated the effort to liquidate their inventories. The situation seemed to have changed following the bullish development in the local Chinese market with new offers observed across the region tracking stable to firmer trend, unfortunately, not the demand.

Background:

Fujian Zhongjing Petrochemical is a subsidiary of China Soft Packaging Group Holdings Limited – a leading BOPP packaging products manufacturer in China. The company ventured into the upstream sector by building its first PP plant in 2012 and has been actively planning to expand the capacity since then.

Existing plants include two PP lines with a nameplate capacity of 1 million tons/year and a 750,000 tons/year propane dehydrogenation (PDH) unit based in Fujian, China. 

In 2018, the company signed a contract to use LyondellBasell’s 5th Generation Spheripol technology to build a new PP line with an estimated annual output of 1.2 million tons/year. The new plant is scheduled to come online between late 2022 to early 2023. 

Want to contact this seller? Let us know.